The PEPE 4-hour chart is nearing oversold conditions, but the green dot on the Money Flow Index (MFI) has yet to appear, preventing a confirmed bullish reversal.
According to the crypto analyst Pepe Whale, despite this, the 1-hour chart shows an oversold reading of 0, signaling that a relief rally could be coming, offering some short-term price recovery.
Source: Pepe Whale X Post
The first swing trade was initiated at $0.00000380, with this level identified as a potential support zone. As mentioned yesterday, this area was expected to see a rest in price action.
Now, the market is being watched closely for signs of upward momentum, as the next move could provide valuable trading opportunities.
Also Read: PEPE Price Analysis: Can $0.0000034 Hold as Momentum Softens?
Momentum Indicators Point to Cautious Optimism
According to TradingView, the MACD (12, 26, 9) is displaying weakening momentum after a previous bullish phase. The MACD line is now crossing below the signal line, and the histogram is in negative territory.
The increasing size of the red bars is an indication of increasing bearish pressure. The momentum is not supporting the continuation of the uptrend, which is an indication of a short-term trend change.
Source: TradingView
The RSI (14) stands at 39, which is below the 50-level and indicates bearish momentum. The reading has not yet fallen to the oversold zone; hence, it has more room to fall.
The attempts to bounce back have not been successful for the 50-level; hence, buying strength is still weak.
PEPE Surges Past $1B Inflows as Interest Rises
Apart from this bearish price movement, the token has rebounded well with over $1B inflows and good spot volume. This shows that the market is still interested in the token.
According to the crypto analyst Pepe Whale, the low open interest of PEPE raises concerns regarding market confidence. This shows that traders are not positioning themselves for the future prices of the token.
The token has also experienced a decline in the number of holders on the Ethereum chain by 10,000. This could be a clear indication that some people have lost trust in the token.
However, the overall performance of the token is impressive, especially with a good retrace as expected. This is a normal process in a volatile market.
Also Read: PEPE Enters Ascending Triangle Formation With a $0.0000520 Target in Sight
